General Books & Subsidiary Books

General Books & Subsidiary Books

 

Source: chapter III of Accounts Code Click here

 

·         The first and foremost function of the Accounts Dept is "Keeping the accounts of the railway in accordance with the prescribed rules".   Clickfor article on Functions of the Accounts Dept

 

·         That is, General Books such as Daily Cash Book, Monthly Cash Book, Journal & Ledger and various Subsidiary Books.

 

·         Compilation of Accounts    - The following are the duties of the Accounts Officer:

 

1.       Collect and bring to account all the receipts and disbursements of Unit, i.e., Division, Railway (CO7s - Cash Order 7 for out goings & MCRs - Misc. Cash Receipts for Receipts)

2.       A) To transfer to other accounts circles the items pertaining to them which originate in his circle and  B) to adjust in his books of account the items of expenditure or receipts pertaining to his own circle and transferred to him by other Accounts officers; (Through RJVs - Revenue Journal Vouchers & CJVs - Capital Journal Vouchers)

3.       To make up a detailed account of his accounts circle monthly;  ( Monthly Account Current)

4.       To make up a detailed account of his circle for each year. (Annual Account Current)

5.       To prepare relevant financial reports for management information and action. (Appropriation Accounts, P & L Account, Balance Sheet etc)

 

Accounting Transactions
Two distinct headings	Cash transactions		Book Adjustments
Sub Headings	Disbursements	Receipts	Revenue	Capital
Four Pillars for entire Accounting transactions	CO 7	MCR	RJV	CJV
Code used in the documents	1	2	3	4

 

 

General Books :

 

These are the essential records for compiling the monthly and Annual Accounts.

 

 

                       I.               General Cash Book or Daily abstract of cash transactions

 

·         Form No. 304

·         To bring into all cash transactions of Division/Unit.

·         Posted daily.

·         A voucher (CO7 or MCR) duly signed by an Accounts Officer - support of every entry in it.

·         Balanced daily and reconciled with that in the Cashiers cash book.

·         It should be checked and signed by the officer in-charge of the section.

 

Daily Cash Book
Receipts		Payments
Debit side		Credit side
Particulars	Source	Particulars	Source
Station Remittances	Cash check sheets	Debits in various bills passed	CO7s
Receipts other than Stations	MCRs
Credits in various Bills passed	CO7s
Unpaid amounts remitted by cashier	Lists of unpaid wages

 

                  II.            Monthly Cash Book:

 

·          Posted daily from the totals in the Daily abstract of Cash transactions.

·         Kept in two parts  A. Debits (Receipts)  B. Credits (Disbursements)

·         It should be totaled after the transactions of the last day of the month have been posted.

·         The totals under the Heads RIB - Remittances Into Bank for Receipts and C & B - Cheques & Bills for payments should be reconciled with the statements received from the Banks.

 

                   III.         Journal

·          The transactions which do not involve cash  - should be recorded in the Journl.

·         Each entry in the journal should be supported by Journal Voucher (JV) duly signed by an Accounts Officer.

·         JVs, after preparation by the concerned sections and sent to the Books section for incorporation in the Accounts.

·         JVs should bear separate serial numbers distinct from that cash vouchers

·         Each journal entry should be supported by a narration giving detailed reasons for making adjustment.

·         Totalling of the Journal

·         Add cash totals to the Journal.

 

             IV.               LEDGER

·         The closing totals of the journal should be posted in the Ledger under various heads of accounts.

·         Also shows the progressive balances under those heads, the end of each accounting period.

 

Subsidiary Books:

In addition to the General Books, the following subsidiary records should be maintained.

                                                        I.            Registers of Earnings

                                                      II.            Revenue Allocation Registers

                                                    III.            Registers of Works

                                                    IV.            Suspense Registers ( DP, MAR, Loans & Advances, Deposits, Stores suspense, WMS, Traffic etc)

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